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Your firm is considering a project that will cost $4.596 million up front, generate cash flows of $3.53 million per year for 33 years, and
Your firm is considering a project that will cost $4.596 million up front, generate cash flows of $3.53 million per year for 33 years, and then have a cleanup and shutdown cost of $6.04 million in the fourth year. a. How many IRRs does this project have? b. Calculate a modified IRR for this project assuming a discount and compounding rate of 9.9%. c. Using the MIRR and a cost of capital of 9.9%, would you take the project?
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